A 54-year-old housewife from Mehdipatnam thought she'd found a promising investment opportunity. A messaging group showcased screenshots of trades. Members shared their wins with emojis. The admin, who called himself a "senior portfolio manager," promised returns. Two months later, she was ₹1.6 crore poorer — and the group had vanished.
She's not alone. Fake videos and messages on popular social media platforms are being used to promote so-called “guaranteed return” schemes. WithIndia's investment growth has intersected with organised deception, and first-time crypto investors are among the main targets.
The Three-Step Shield Every Investor Needs
Online scammers aim to make you trust them. And many succeed. Losses linked to online scams are rising steadily. But the same AI tools scammers are using can also be used as an investor’s defense.
A practical verification strategy is key to fending off crypto scammers flooding inboxes with unsolicited offers. An effective "Verify-Before-You-Act" habit entails these three steps:
1. Source Triangulation
Source triangulation helps determine whether an investment opportunity and those pushing it are genuine. It works by comparing claims against information from multiple, independent sources. If the story doesn’t align with reliable references, it may be a scam. However, dependable sources may not always be available for new crypto opportunities. In addition, some fraudsters use wash trading to create the illusion of trading volume.
2. On-Chain/Wallet Context
{{/usCountry}}2. On-Chain/Wallet Context
{{/usCountry}}Wallet context also matters. Crypto transactions tend to be more tamper-proof when they happen on-chain rather than off-chain, as they're recorded and verified directly on the blockchain's main infrastructure. Still, investors should watch for red flags such as address poisoning, pig butchering, and impersonation tokens.
3. Basic Risk Plan
Having a basic risk plan can help you build an investment portfolio that matches your risk tolerance, allowing you to remain in the market long enough to gain experience in crypto trading.
When Education Meets Technology
The number of young people interested in AI is rising, as is the number of online scams. AI training for fraud prevention can give new investors the skills to check stories, identify hype amplified by bots, and test claims before they give their money.
But is investor education alone enough to prevent or reduce fraud-related losses in today's AI-driven world? Can new investors stay ahead of scammers by learning best practices in spotting and stopping fraudulent crypto activity?
A balanced solution may be education plus tech. Teaching investors how to avoid common crypto scams is an important starting point, and AI literacy is becoming increasingly relevant. Although artificial intelligence has been around for decades, it has gained more public attention in recent years. Investors seeking to build a crypto portfolio can use AI to develop and deploy investment strategies. At the same time, AI use brings risks of its own.
A Real-World Example
Investors can now leverage AI-powered tools that aim to assist with market analysis.
Some platforms, such as MEXC, offer tools with features such as the AI Select List that highlights trending tokens and provides insights into the factors driving those trends, helping users understand market sentiment. Features like the AI News Radar aggregate news from multiple sources and track large trades (“whale alerts”), giving users a broader view of market movements. Additionally, the feature allows users to ask questions about market trends, trading strategies, and policies, offering personalised suggestions based on publicly available data.
While these features can support investors in making more informed decisions, they do not officially verify the authenticity of news or prevent fraud. Users should combine AI insights with critical thinking and sound investment practices.
The Bottom Line: Literacy Buys Time
AI literacy alone isn't sufficient to protect India's crypto investors from rising online fraud. Beyond having knowledge of AI tools, investors must be skilled in applying and evaluating them.
You don’t become a seasoned crypto investor overnight. You need to keep learning to build useful insights. Knowing how to use AI trading tools may help inform crypto portfolio decisions over time; however, outcomes are uncertain.
Markets can be unforgiving of inexperience, but education buys time: time that AI tools can extend into competence.
Note to the Reader: Readers are advised that Crypto products and NFTs are unregulated and involve significant risks. There may be no regulatory recourse for losses arising from such transactions.Hindustan Times/HTDS shall not, in any manner, be responsible or liable for the content of the article, advertisement, including the views, opinions, announcements, declarations, or affirmations expressed therein, and is absolved from any legal action or enforceable claims. This content is for informational and awareness purposes only and does not constitute financial advice.